High costs significant barrier for Lankan businesses switching to cleaner energy sources
Finance experts emphasized that high costs are still a significant barrier for Sri Lanka businesses switching to cleaner energy sources, said Head of Cooperation for the European Union Delegation to Sri Lanka and the Maldives Dr Johann Hesse.
“By reducing energy waste and greenhouse gas emissions, industries will not only chart a more sustainable path to economic growth, but will also help the country meet its climate goals and energy security. We are happy to assist Sri Lanka to meet the goals it has committed to achieve.” he said.
Representatives from Sri Lanka’s business community, government, and the finance sector participated in this second edition of the Industry Dialogue organized by the European Union (EU)-funded Accelerating Industries’ Climate Response in Sri Lanka project.
He reminded more than 120 participants of the risks of climate change and the need for action at all levels: UNIDO’s representative at the event Nicholas Dehod, pointed out the benefits for Sri Lankan businesses in moving away from expensive and polluting imported fossil fuels. However, he noted that, “many companies still find the costs of necessary technologies and expertise too high, exacerbated by a lack of accessible loans and financial incentives for decarbonization investments.”
“For Sri Lanka to emerge stronger, industrial decarbonization must be at the heart of the country’s economic recovery from the energy crisis of the past two years,” said Secretary to the Ministry of Industry Thilaka Jayasundara.
“This means that manufacturing processes should become greener by shifting away from fossil fuels, scaling-up renewable energy and adopting energy-efficient solutions. Industries employ 30% of the nation’s workforce and deliver the second-highest share of GDP, but they also consume large quantities of fossil fuel imports. In recent years, this has led to challenging cost rises for many businesses.”
“By reducing energy waste and greenhouse gas emissions, industries will not only chart a more sustainable path to economic growth, but will also help the country meet its climate goals and energy security. We are happy to assist Sri Lanka to meet the goals it has committed to achieve.” he said.
The Sri Lankan government has pledged that 70% of the country’s energy will come from renewable sources by 2030. As part of this, Sri Lankan industries must reduce their fossil fuel use, aiming for a 7% reduction in industrial emissions. Within a year, measures adopted by 45 energy management trainees reduced energy consumption by 6.9 GWh and GHG emissions by 5,400 metric tonnes. This reduction is equivalent to removing over 1,000 petrol cars from the road for a year. The Accelerating Industries’ Climate Response in Sri Lanka project is a five-year initiative designed to help the country’s industrial sector transition to a low-carbon future.
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